California 2017 2017-2018 Regular Session

California Senate Bill SB1014 Amended / Bill

Filed 06/21/2018

                    Amended IN  Assembly  June 21, 2018 Amended IN  Assembly  June 11, 2018 Amended IN  Senate  May 25, 2018 Amended IN  Senate  April 26, 2018 Amended IN  Senate  April 19, 2018 Amended IN  Senate  April 09, 2018 Amended IN  Senate  March 22, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1014Introduced by Senator SkinnerFebruary 06, 2018 An act to amend Section 5431 of, and to add Section 5450 to, the Public Utilities Code, relating to vehicles. LEGISLATIVE COUNSEL'S DIGESTSB 1014, as amended, Skinner. California Clean Miles Standard and Incentive Program: zero-emission vehicles.Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. The California Global Warming Solutions Act of 2006 establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases.This bill would require, by January 1, 2020, that the state board establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets starting in 2023 for the reduction under that baseline for emissions per mile driven on behalf of a transportation network company, including annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop an emissions reductions plan that includes proposals on how to meet the emissions reduction targets that would be established pursuant to the bill. The bill would require, beginning January 1, 2030, that 100% of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company be zero-emission vehicles. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.(b) California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.(c) Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illness illnesses and premature deaths.(d) Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through coordination of land use and transportation planning.(e) The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and removal of regulatory barriers.(f) In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 creating that created a goal of 1.5 million zero-emission vehicles on the road by 2025.(g) In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.(h) In 2018, Governor Browns Brown issued Executive Order B-48-18 creating that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.(i) The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.(j) Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.(k) In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage communities.(l) The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.(m) Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.(n) Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.(o) A recent Rocky Mountain Institute study (Richard Li Garrett Fitzgerald (March 29, 2018) Ride-Hailing Drivers Are Ideal Candidates for Electric Vehicles) concluded that a full-time transportation network company driver working 50 hours a week can save an average of five-thousand two hundred dollars ($5,200) per year in total vehicle expenses with an electric vehicle as compared to a gas combustion vehicle.(p) In furtherance of state, regional, and local goals to align pollution and emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.SEC. 2. Section 5431 of the Public Utilities Code is amended to read:5431. For purposes of this article, the following terms have the following meanings:(a) Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.(b) Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:(1) Has a passenger capacity of eight persons or less, including the driver.(2) Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.(3) Meets all inspection and other safety requirements imposed by the commission.(4) Is not a taxicab or limousine.(c) Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.(d) Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.(e) Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.SEC. 3. Section 5450 is added to the Public Utilities Code, to read:5450. (a) (1) The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.(2) For purposes of this section, board means the State Air Resources Board.(b) (1) By January 1, 2020, the board shall establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.(2) By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions per vehicle-mile or passenger-mile driven on behalf of a transportation network company. These targets shall be consistent with the Zero Emission Vehicle Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage data reported by the transportation network companies to the commission.(3) The board shall delay adoption, and the commission shall delay implementation, of the targets pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.(c) By January 1, 2022, and every two years thereafter, each transportation network company shall develop an emissions reductions plan. A transportation network company emissions reductions plan shall include proposals on how to meet the emissions reduction targets established pursuant to subdivision (b) based upon the following:(1) Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.(2) Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.(3) Decreased gram-per-mile greenhouse gas emissions rates.(4) Increased passenger-miles in proportion to overall vehicle-miles.(d)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, vehicle fleet means 10 or more vehicles under common ownership or operation.(e)(d) In implementing this section, the commission shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles. The commission shall additionally do all the following:(1) Ensure minimal negative impact on low-income and moderate-income drivers.(2) Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Section 65080 of the Government Code.(3) Support the goals of clean mobility for low- and moderate-income individuals.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

 Amended IN  Assembly  June 21, 2018 Amended IN  Assembly  June 11, 2018 Amended IN  Senate  May 25, 2018 Amended IN  Senate  April 26, 2018 Amended IN  Senate  April 19, 2018 Amended IN  Senate  April 09, 2018 Amended IN  Senate  March 22, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1014Introduced by Senator SkinnerFebruary 06, 2018 An act to amend Section 5431 of, and to add Section 5450 to, the Public Utilities Code, relating to vehicles. LEGISLATIVE COUNSEL'S DIGESTSB 1014, as amended, Skinner. California Clean Miles Standard and Incentive Program: zero-emission vehicles.Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. The California Global Warming Solutions Act of 2006 establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases.This bill would require, by January 1, 2020, that the state board establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets starting in 2023 for the reduction under that baseline for emissions per mile driven on behalf of a transportation network company, including annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop an emissions reductions plan that includes proposals on how to meet the emissions reduction targets that would be established pursuant to the bill. The bill would require, beginning January 1, 2030, that 100% of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company be zero-emission vehicles. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES 

 Amended IN  Assembly  June 21, 2018 Amended IN  Assembly  June 11, 2018 Amended IN  Senate  May 25, 2018 Amended IN  Senate  April 26, 2018 Amended IN  Senate  April 19, 2018 Amended IN  Senate  April 09, 2018 Amended IN  Senate  March 22, 2018

Amended IN  Assembly  June 21, 2018
Amended IN  Assembly  June 11, 2018
Amended IN  Senate  May 25, 2018
Amended IN  Senate  April 26, 2018
Amended IN  Senate  April 19, 2018
Amended IN  Senate  April 09, 2018
Amended IN  Senate  March 22, 2018

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Senate Bill No. 1014

Introduced by Senator SkinnerFebruary 06, 2018

Introduced by Senator Skinner
February 06, 2018

 An act to amend Section 5431 of, and to add Section 5450 to, the Public Utilities Code, relating to vehicles. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

SB 1014, as amended, Skinner. California Clean Miles Standard and Incentive Program: zero-emission vehicles.

Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. The California Global Warming Solutions Act of 2006 establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases.This bill would require, by January 1, 2020, that the state board establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets starting in 2023 for the reduction under that baseline for emissions per mile driven on behalf of a transportation network company, including annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop an emissions reductions plan that includes proposals on how to meet the emissions reduction targets that would be established pursuant to the bill. The bill would require, beginning January 1, 2030, that 100% of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company be zero-emission vehicles. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.

Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. The California Global Warming Solutions Act of 2006 establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases.

This bill would require, by January 1, 2020, that the state board establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets starting in 2023 for the reduction under that baseline for emissions per mile driven on behalf of a transportation network company, including annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop an emissions reductions plan that includes proposals on how to meet the emissions reduction targets that would be established pursuant to the bill. The bill would require, beginning January 1, 2030, that 100% of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company be zero-emission vehicles. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.(b) California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.(c) Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illness illnesses and premature deaths.(d) Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through coordination of land use and transportation planning.(e) The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and removal of regulatory barriers.(f) In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 creating that created a goal of 1.5 million zero-emission vehicles on the road by 2025.(g) In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.(h) In 2018, Governor Browns Brown issued Executive Order B-48-18 creating that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.(i) The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.(j) Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.(k) In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage communities.(l) The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.(m) Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.(n) Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.(o) A recent Rocky Mountain Institute study (Richard Li Garrett Fitzgerald (March 29, 2018) Ride-Hailing Drivers Are Ideal Candidates for Electric Vehicles) concluded that a full-time transportation network company driver working 50 hours a week can save an average of five-thousand two hundred dollars ($5,200) per year in total vehicle expenses with an electric vehicle as compared to a gas combustion vehicle.(p) In furtherance of state, regional, and local goals to align pollution and emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.SEC. 2. Section 5431 of the Public Utilities Code is amended to read:5431. For purposes of this article, the following terms have the following meanings:(a) Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.(b) Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:(1) Has a passenger capacity of eight persons or less, including the driver.(2) Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.(3) Meets all inspection and other safety requirements imposed by the commission.(4) Is not a taxicab or limousine.(c) Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.(d) Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.(e) Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.SEC. 3. Section 5450 is added to the Public Utilities Code, to read:5450. (a) (1) The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.(2) For purposes of this section, board means the State Air Resources Board.(b) (1) By January 1, 2020, the board shall establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.(2) By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions per vehicle-mile or passenger-mile driven on behalf of a transportation network company. These targets shall be consistent with the Zero Emission Vehicle Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage data reported by the transportation network companies to the commission.(3) The board shall delay adoption, and the commission shall delay implementation, of the targets pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.(c) By January 1, 2022, and every two years thereafter, each transportation network company shall develop an emissions reductions plan. A transportation network company emissions reductions plan shall include proposals on how to meet the emissions reduction targets established pursuant to subdivision (b) based upon the following:(1) Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.(2) Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.(3) Decreased gram-per-mile greenhouse gas emissions rates.(4) Increased passenger-miles in proportion to overall vehicle-miles.(d)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, vehicle fleet means 10 or more vehicles under common ownership or operation.(e)(d) In implementing this section, the commission shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles. The commission shall additionally do all the following:(1) Ensure minimal negative impact on low-income and moderate-income drivers.(2) Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Section 65080 of the Government Code.(3) Support the goals of clean mobility for low- and moderate-income individuals.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares all of the following:(a) The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.(b) California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.(c) Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illness illnesses and premature deaths.(d) Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through coordination of land use and transportation planning.(e) The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and removal of regulatory barriers.(f) In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 creating that created a goal of 1.5 million zero-emission vehicles on the road by 2025.(g) In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.(h) In 2018, Governor Browns Brown issued Executive Order B-48-18 creating that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.(i) The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.(j) Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.(k) In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage communities.(l) The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.(m) Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.(n) Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.(o) A recent Rocky Mountain Institute study (Richard Li Garrett Fitzgerald (March 29, 2018) Ride-Hailing Drivers Are Ideal Candidates for Electric Vehicles) concluded that a full-time transportation network company driver working 50 hours a week can save an average of five-thousand two hundred dollars ($5,200) per year in total vehicle expenses with an electric vehicle as compared to a gas combustion vehicle.(p) In furtherance of state, regional, and local goals to align pollution and emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.

SECTION 1. The Legislature finds and declares all of the following:(a) The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.(b) California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.(c) Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illness illnesses and premature deaths.(d) Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through coordination of land use and transportation planning.(e) The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and removal of regulatory barriers.(f) In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 creating that created a goal of 1.5 million zero-emission vehicles on the road by 2025.(g) In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.(h) In 2018, Governor Browns Brown issued Executive Order B-48-18 creating that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.(i) The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.(j) Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.(k) In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage communities.(l) The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.(m) Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.(n) Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.(o) A recent Rocky Mountain Institute study (Richard Li Garrett Fitzgerald (March 29, 2018) Ride-Hailing Drivers Are Ideal Candidates for Electric Vehicles) concluded that a full-time transportation network company driver working 50 hours a week can save an average of five-thousand two hundred dollars ($5,200) per year in total vehicle expenses with an electric vehicle as compared to a gas combustion vehicle.(p) In furtherance of state, regional, and local goals to align pollution and emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.

SECTION 1. The Legislature finds and declares all of the following:

### SECTION 1.

(a) The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.

(b) California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.

(c) Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illness illnesses and premature deaths.

(d) Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through coordination of land use and transportation planning.

(e) The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and removal of regulatory barriers.

(f) In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 creating that created a goal of 1.5 million zero-emission vehicles on the road by 2025.

(g) In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.

(h) In 2018, Governor Browns Brown issued Executive Order B-48-18 creating that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.

(i) The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.

(j) Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.

(k) In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage communities.

(l) The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.

(m) Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.

(n) Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.

(o) A recent Rocky Mountain Institute study (Richard Li Garrett Fitzgerald (March 29, 2018) Ride-Hailing Drivers Are Ideal Candidates for Electric Vehicles) concluded that a full-time transportation network company driver working 50 hours a week can save an average of five-thousand two hundred dollars ($5,200) per year in total vehicle expenses with an electric vehicle as compared to a gas combustion vehicle.

(p) In furtherance of state, regional, and local goals to align pollution and emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.

SEC. 2. Section 5431 of the Public Utilities Code is amended to read:5431. For purposes of this article, the following terms have the following meanings:(a) Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.(b) Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:(1) Has a passenger capacity of eight persons or less, including the driver.(2) Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.(3) Meets all inspection and other safety requirements imposed by the commission.(4) Is not a taxicab or limousine.(c) Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.(d) Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.(e) Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.

SEC. 2. Section 5431 of the Public Utilities Code is amended to read:

### SEC. 2.

5431. For purposes of this article, the following terms have the following meanings:(a) Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.(b) Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:(1) Has a passenger capacity of eight persons or less, including the driver.(2) Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.(3) Meets all inspection and other safety requirements imposed by the commission.(4) Is not a taxicab or limousine.(c) Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.(d) Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.(e) Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.

5431. For purposes of this article, the following terms have the following meanings:(a) Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.(b) Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:(1) Has a passenger capacity of eight persons or less, including the driver.(2) Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.(3) Meets all inspection and other safety requirements imposed by the commission.(4) Is not a taxicab or limousine.(c) Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.(d) Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.(e) Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.

5431. For purposes of this article, the following terms have the following meanings:(a) Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.(b) Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:(1) Has a passenger capacity of eight persons or less, including the driver.(2) Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.(3) Meets all inspection and other safety requirements imposed by the commission.(4) Is not a taxicab or limousine.(c) Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.(d) Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.(e) Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.



5431. For purposes of this article, the following terms have the following meanings:

(a) Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.

(b) Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:

(1) Has a passenger capacity of eight persons or less, including the driver.

(2) Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.

(3) Meets all inspection and other safety requirements imposed by the commission.

(4) Is not a taxicab or limousine.

(c) Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.

(d) Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.

(e) Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.

SEC. 3. Section 5450 is added to the Public Utilities Code, to read:5450. (a) (1) The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.(2) For purposes of this section, board means the State Air Resources Board.(b) (1) By January 1, 2020, the board shall establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.(2) By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions per vehicle-mile or passenger-mile driven on behalf of a transportation network company. These targets shall be consistent with the Zero Emission Vehicle Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage data reported by the transportation network companies to the commission.(3) The board shall delay adoption, and the commission shall delay implementation, of the targets pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.(c) By January 1, 2022, and every two years thereafter, each transportation network company shall develop an emissions reductions plan. A transportation network company emissions reductions plan shall include proposals on how to meet the emissions reduction targets established pursuant to subdivision (b) based upon the following:(1) Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.(2) Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.(3) Decreased gram-per-mile greenhouse gas emissions rates.(4) Increased passenger-miles in proportion to overall vehicle-miles.(d)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, vehicle fleet means 10 or more vehicles under common ownership or operation.(e)(d) In implementing this section, the commission shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles. The commission shall additionally do all the following:(1) Ensure minimal negative impact on low-income and moderate-income drivers.(2) Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Section 65080 of the Government Code.(3) Support the goals of clean mobility for low- and moderate-income individuals.

SEC. 3. Section 5450 is added to the Public Utilities Code, to read:

### SEC. 3.

5450. (a) (1) The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.(2) For purposes of this section, board means the State Air Resources Board.(b) (1) By January 1, 2020, the board shall establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.(2) By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions per vehicle-mile or passenger-mile driven on behalf of a transportation network company. These targets shall be consistent with the Zero Emission Vehicle Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage data reported by the transportation network companies to the commission.(3) The board shall delay adoption, and the commission shall delay implementation, of the targets pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.(c) By January 1, 2022, and every two years thereafter, each transportation network company shall develop an emissions reductions plan. A transportation network company emissions reductions plan shall include proposals on how to meet the emissions reduction targets established pursuant to subdivision (b) based upon the following:(1) Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.(2) Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.(3) Decreased gram-per-mile greenhouse gas emissions rates.(4) Increased passenger-miles in proportion to overall vehicle-miles.(d)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, vehicle fleet means 10 or more vehicles under common ownership or operation.(e)(d) In implementing this section, the commission shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles. The commission shall additionally do all the following:(1) Ensure minimal negative impact on low-income and moderate-income drivers.(2) Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Section 65080 of the Government Code.(3) Support the goals of clean mobility for low- and moderate-income individuals.

5450. (a) (1) The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.(2) For purposes of this section, board means the State Air Resources Board.(b) (1) By January 1, 2020, the board shall establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.(2) By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions per vehicle-mile or passenger-mile driven on behalf of a transportation network company. These targets shall be consistent with the Zero Emission Vehicle Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage data reported by the transportation network companies to the commission.(3) The board shall delay adoption, and the commission shall delay implementation, of the targets pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.(c) By January 1, 2022, and every two years thereafter, each transportation network company shall develop an emissions reductions plan. A transportation network company emissions reductions plan shall include proposals on how to meet the emissions reduction targets established pursuant to subdivision (b) based upon the following:(1) Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.(2) Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.(3) Decreased gram-per-mile greenhouse gas emissions rates.(4) Increased passenger-miles in proportion to overall vehicle-miles.(d)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, vehicle fleet means 10 or more vehicles under common ownership or operation.(e)(d) In implementing this section, the commission shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles. The commission shall additionally do all the following:(1) Ensure minimal negative impact on low-income and moderate-income drivers.(2) Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Section 65080 of the Government Code.(3) Support the goals of clean mobility for low- and moderate-income individuals.

5450. (a) (1) The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.(2) For purposes of this section, board means the State Air Resources Board.(b) (1) By January 1, 2020, the board shall establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.(2) By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions per vehicle-mile or passenger-mile driven on behalf of a transportation network company. These targets shall be consistent with the Zero Emission Vehicle Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage data reported by the transportation network companies to the commission.(3) The board shall delay adoption, and the commission shall delay implementation, of the targets pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.(c) By January 1, 2022, and every two years thereafter, each transportation network company shall develop an emissions reductions plan. A transportation network company emissions reductions plan shall include proposals on how to meet the emissions reduction targets established pursuant to subdivision (b) based upon the following:(1) Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.(2) Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.(3) Decreased gram-per-mile greenhouse gas emissions rates.(4) Increased passenger-miles in proportion to overall vehicle-miles.(d)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, vehicle fleet means 10 or more vehicles under common ownership or operation.(e)(d) In implementing this section, the commission shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles. The commission shall additionally do all the following:(1) Ensure minimal negative impact on low-income and moderate-income drivers.(2) Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Section 65080 of the Government Code.(3) Support the goals of clean mobility for low- and moderate-income individuals.



5450. (a) (1) The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.

(2) For purposes of this section, board means the State Air Resources Board.

(b) (1) By January 1, 2020, the board shall establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.

(2) By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions per vehicle-mile or passenger-mile driven on behalf of a transportation network company. These targets shall be consistent with the Zero Emission Vehicle Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage data reported by the transportation network companies to the commission.

(3) The board shall delay adoption, and the commission shall delay implementation, of the targets pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.

(c) By January 1, 2022, and every two years thereafter, each transportation network company shall develop an emissions reductions plan. A transportation network company emissions reductions plan shall include proposals on how to meet the emissions reduction targets established pursuant to subdivision (b) based upon the following:

(1) Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.

(2) Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.

(3) Decreased gram-per-mile greenhouse gas emissions rates.

(4) Increased passenger-miles in proportion to overall vehicle-miles.

(d)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, vehicle fleet means 10 or more vehicles under common ownership or operation.



(e)



(d) In implementing this section, the commission shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles. The commission shall additionally do all the following:

(1) Ensure minimal negative impact on low-income and moderate-income drivers.

(2) Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Section 65080 of the Government Code.

(3) Support the goals of clean mobility for low- and moderate-income individuals.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

### SEC. 4.